LINK Study: Poor African Americans in the Deep South Are Most Likely to Be Audited By the IRS
"Humphreys County, Mississippi, seems like an odd place for the IRS to go hunting for tax cheats. It’s a rural county in the Mississippi Delta known for its catfish farms, and more than a third of its mostly African American residents are below the poverty line. But according to a new study, it is the most heavily audited county in America.
The study estimates that Humphreys, with a median annual household income of just $26,000, is audited at a rate 51 percent higher than Loudoun County, Virginia, which boasts a median income of $130,000, the highest in the country.
The audit rate is also very high in South Texas’ largely Hispanic counties and in counties with Native American reservations, such as in South Dakota. Primarily poor, white counties, such as those in eastern Kentucky in Appalachia, also have elevated audit rates.
The map reveals wide variations in the audit rate from place to place, but also how certain groups of Americans are disproportionately affected by the IRS’ policies. The five counties with the highest audit rates are all predominantly African American, rural counties in the Deep South."
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5 comments
Feel free to reply to any comment by clicking the "Reply" button.Don't take this wrong I am not trying to belittle the US. But in the UK the Revenue made a choice to not chase people on low incomes as hard as those on high, not only because they have less money and therefore the rewards, even if they are caught, are not so great, but also because a careful study found that low income people are less likely to cheat anyway. Things may be different your side of the pond but make of that what you will.
Fernapple
Level 9
Apr 6, 2019
1
I've been saying for years that income tax needs to be repealed or abolished. It costs way too much money for compliance and enforcement. A better solution would be a flat tax, say 15% for everyone. Also abolish the social security cap. The richest of the rich would pay their fair share of social security taxes.
RobertMartin
Level 8
Apr 5, 2019
1
Consider a single with a making $10 hour. She currently qualifies for the Earned Income Credit (EIC) and her tax is negative because she gets back (about $3000) while putting in nothing. I have no problem with that. I am just grateful I don’t have to trade places with her. Now would you take away her EIC and in addition tax her % ($3000) and reduce her total income by roughly $6000? She would now have to live on $,000 instead of the $23,000 she now gets including EIC. A flat tax would punish her severely. The so-called flat tax is not flat – it is instead, regressive punishing the lower echelons and it is a bad idea even if arrived at with good intentions.
I DO agree with eliminating the cap on SS though, good idea!
@ToolGuy because people are taxed unfairly. It seems like those most unable to afford taxes pay a higher percentage than the wealthy. The poor can barely if at all pay taxes. The wealthy shouldn't be taxed to death either, it almost seems like a penalty or punishment for hard work and making sacrifices to get where they are at. I really don't know the answer to tax inequality.
@SandBKnox good point. That hadn't occurred to me
Don't go where the real fraud occurs. Harass the powerless. Classic class suppression.
zeuser
Level 9
Apr 5, 2019
2
So, a few of things here. First, what’s up with the large white areas of the map. White is not in the legend, so is the data missing? If so those are fairly significant sections.
Second, I was under the impression that IRS agents made bonuses based on what their audits brought in. Auditing the poor does not seem like a great strategy if that is your goal.
Third, the variance is form 6 to 11+ out of a 1000. While that is still at least twice as much, it seems like it’s a statistically small deviation. I don’t know, stats isn’t my strong suit.
indirect76
Level 7
Apr 5, 2019
0
Even if they do make bonuses, the wealthy can afford lawyers to fight, get the payment lowered or done away with entirely, & will drag it out for years...while the poor can be forced to pay much sooner, if in smaller amounts.
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